In the latest close session, Vertex Pharmaceuticals (VRTX) was down 1% at $455.45. This change was narrower than the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.79%, while the tech-heavy Nasdaq lost 1.3%.
Prior to today's trading, shares of the drugmaker had gained 5.91% outpaced the Medical sector's gain of 3.07% and the S&P 500's gain of 3.55%.
Market participants will be closely following the financial results of Vertex Pharmaceuticals in its upcoming release. The company is expected to report EPS of $4.24, up 133.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.88 billion, up 8.85% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.82 per share and a revenue of $11.91 billion, representing changes of +4142.86% and +8.06%, respectively, from the prior year.
Any recent changes to analyst estimates for Vertex Pharmaceuticals should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Vertex Pharmaceuticals is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Vertex Pharmaceuticals's current valuation metrics, including its Forward P/E ratio of 25.82. This valuation marks a premium compared to its industry average Forward P/E of 20.
The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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